FAIR supports the establishment of a statutory national investor advocacy organization in the context of a national securities commission. We encourage people to read the thoughtful submission of Pamela Reeve Ph.D to the Expert Panel on Securities Regulation in Canada.

The need for a national investor advocacy organization was noted in the IDA Task Force to Modernize Securities Legislation in Canada in its Final Report “Canada Steps Up” in October 2006. A research study commissioned by the Task Force entitled “Involving Consumers in Securities Regulations” (Julia Black) noted the absence of a national consumer advocate active in securities regulation.  The following are brief excerpts from the study:

Role of Consumer Advocates
“Consumer advocates can play an essential role by communicating the interests and needs of retail investors to regulators. There are many active and committed individual consumers advocates in Canada, and a few advocacy groups. However, on the whole the larger, established national consumer advocacy bodies have not been active in securities regulation. This contrasts with the position in Australia, the U.K. and the EU. Whilst there are many committed and active individuals, there is no real, coherent, national, well-resourced consumer voice representing the interests of all Canadian retail investors in securities regulation”. (Page 555 of Volume 6 – Research Studies)

Recommendation #4.1
“Regulators and others need to work together to develop a credible, national, well resourced and coherent voice of consumers in Canadian securities regulation.” (Page 559 of Volume 6 – Research Studies)